The Marketing Revolutionhttp://blogs.forbes.com/lisaarthur
[Please go to \'Settings\' to change your Tagline]Thu, 17 Oct 2013 17:54:00 +0000en-UShourly1http://wordpress.org/?v=3.9.2How To Embrace The Five Steps Of Data-Driven Marketinghttp://www.forbes.com/sites/lisaarthur/2013/10/17/how-to-embrace-the-five-steps-of-data-driven-marketing/
http://www.forbes.com/sites/lisaarthur/2013/10/17/how-to-embrace-the-five-steps-of-data-driven-marketing/#commentsThu, 17 Oct 2013 17:52:00 +0000http://blogs.forbes.com/lisaarthur/?p=3896At its core, data-driven marketing centers on one thing and one thing only: propelling value by engaging customers more effectively. That may sound straightforward at first, but I can assure you, the task is anything but simple, and it’s becoming more and more complex every day. Digital disruption is throwing the physical world of processes and goods into disorder and yet, customers are more empowered –and more demanding –than ever before. What can you do to embrace the five steps of data-driven marketing and regain control of today’s complex digital marketing environment?

Adopt an integrated marketing management (IMM) approach. IMM focuses on simplifying the complexity of data, processes, interaction channels and insights, and it will transform your internal and external marketing processes. How? By providing the tools you need to not only streamline internal workflow, but also to interact with customers and prospects in innovative and personalized ways across an ever-widening array of channels and platforms. In other words, IMM enables you to maintain a steady focus on the customer while taking advantage of 21st century marketing technology.

Look internally and externally. Analyze processes with both customers and employees to understand your biggest obstacles and what might be holding you back. Remember: Your goal is to integrate marketing and use big data insights across the enterprise so you can drive value by engaging customers more effectively.

Leverage best practices. Upgrading your marketing operations, customer interaction management and overall go-to-market strategy is an enormous endeavor, so take it one step at a time. Visualize your future state, and then work with proven experts to begin adopting a more data-driven marketing approach.

Learn from the efforts of others. There’s no need to reinvent the wheel every time. My new book contains many examples of companies that are already well on their way to becoming data-driven organizations. Marketing is constantly evolving, though. Read, listen, talk and network. Apply the best of what you learn—and avoid the land mines others point out—to transform your own business and organization.

Don’t let the complexity grow. Complexity is one of the biggest obstacles marketers face. And if you think it’s challenging today, just wait—it’s only going to get more complicated in the future. Work with IT and your peers to better understand where you can eliminate complexity and adopt simplification and streamlining, instead. Whenever you add new technologies and processes, make sure you take the time to look back at the impact.

It has been my distinct pleasure to share the five steps to data-driven marketing with you over the past few weeks. The conversation about data-driven marketing is a conversation we all need to have –in boardrooms, within marketing organizations and throughout the enterprise –and it needs to start today. My hope is these blog posts and my book Big Data Marketing will inspire discussions at your company, or make those you’re already having better. Let’s put big data to work to engage customers more effectively and drive value!

]]>http://www.forbes.com/sites/lisaarthur/2013/10/17/how-to-embrace-the-five-steps-of-data-driven-marketing/feed/2Data-Driven Marketing Step Five: Process Is The New Blackhttp://www.forbes.com/sites/lisaarthur/2013/10/10/data-driven-marketing-step-five-process-is-the-new-black/
http://www.forbes.com/sites/lisaarthur/2013/10/10/data-driven-marketing-step-five-process-is-the-new-black/#commentsThu, 10 Oct 2013 15:39:00 +0000http://blogs.forbes.com/lisaarthur/?p=3880As I wrap up this five-part series designed to help you implement data-driven marketing, it’s time to talk about process. Granted, process is usually not a hot topic among marketers; most can’t imagine it as anything “sexy.” However, when process delivers competitive advantage or elevates brand relevance, I can assure you, it’s very sexy. Here’s how you can up your game with processes that improve performance, enhance the customer experience and increase sales:

Start by agreeing on the definition of process. Make sure your team knows you’re not talking about the old-fashioned way of doing business, like hard-copy job-starter forms crammed into folders. Today’s processes are sleek and sophisticated. They’re updated, purpose-built marketing activities made possible by advances in marketing technology and automation. Simply put, process is what will enable you to regain control of the modern marketing environment. But to get that control, you’ll need to define process for your organization and determine what analytics are required for the individual customer, overall customer and operational performance views.

Use process to ramp up accountability. I’ve discovered that insisting on accountability from my team doesn’t make me a dictator. Quite the opposite. Insisting on accountability makes me a better team player because it creates the feedback and dialogue required for clarity and collaboration. Put processes in place, and your team will find: 1) their agendas are less cluttered, because responsibilities are clearly outlined, and 2) healthy debate reveals better solutions.

Embrace integrated marketing with an Integrated Marketing Management (IMM) platform. Markets change, and so do marketing departments, strategies and campaigns. To stay agile, you must obliterate the fractured systems that fragment data. Unify core business applications to implement cross-functional and global processes, and have checks and balance in place to measure the impact.

If you want to untangle the data hairball, you have to jettison provisional management processes, ad hoc applications and “taped-together” technologies. Put modern processes in place, and you’ll be able to better understand and interpret big data. Once you do, your internal teams won’t be the only ones who reap the rewards –your stakeholders, shareholders and customers, will benefit, too.

Photo: http://www.flickr.com/photos/holeymoon/2220076765/

]]>http://www.forbes.com/sites/lisaarthur/2013/10/10/data-driven-marketing-step-five-process-is-the-new-black/feed/2Data-Driven Marketing Step Four: Make Metrics Your Mantrahttp://www.forbes.com/sites/lisaarthur/2013/10/03/data-driven-marketing-step-four-make-metrics-your-mantra/
http://www.forbes.com/sites/lisaarthur/2013/10/03/data-driven-marketing-step-four-make-metrics-your-mantra/#commentsThu, 03 Oct 2013 13:48:00 +0000http://blogs.forbes.com/lisaarthur/?p=3860CMOs, how do you demonstrate that your marketing efforts contribute value to the business? Here’s the best way: Use metrics to measure your progress. No, I’m not talking about how many “liked” your Facebook page or the number of clicks on your website. I’m talking about tracking results, such as the returns from your latest media buy or the increase in marketing-qualified leads. I’m talking about showing precisely how marketing’s effectiveness and efficiency is improving. The proof you need is in the metrics, and that’s why I’m always telling my team, “Marketers, you need to make metrics your mantra.”

Here’s the problem, though: Many marketers are anxious about implementing metrics; they’re just not accustomed to this level of scrutiny. In my upcoming book, I tell the story of the CMO of a large well-established financial services institution who confessed to me that measurement made her team “nervous.” They had endured several organizational realignments and –no surprise –saw metrics as a negative tool senior management could use to “manage” marketers right out of their jobs.

But as marketing leaders, we can no longer succumb to fears or confusion. And we can no longer settle for “making do” with antiquated approaches to marketing operations.

Start by determining exactly what and how to measure. For instance, is your leadership team on the same page regarding Return on Investment (ROI) versus Return on Marketing Investment (ROMI) versus Return on Marginal Marketing Investment (ROMMI)? Which of these metrics is most relevant to your company and its business objectives?

I can guarantee one thing: The C-suite will not be impressed with the number of website clicks, Twitter followers or Facebook “likes.” Executives want results. They don’t want to look at metrics for metrics’ sake. So use metrics that clearly demonstrate marketing’s contribution to the company’s objectives, such as ROMI or the number of marketing-qualified leads. In other words, give them want they want.

And please . . . Don’t get lost in data. Instead, stay focused on results and make sure everything ties back to your strategy. Work with your peers, your CEO and your team to understand what metrics matter and which outcomes will drive true value to revenue and customer retention. Then, work to measure broadly and deeply. Most importantly, take action on the insights gained from the metrics to optimize your marketing.

Today’s CMOs have to develop a holistic view of marketing. We have to work to understand the best way to measure marketing initiatives and activities, and we have to ensure the entire organization understands and see values in the metrics we bring back.

See you next week for the final post in my five-step series about how to implement data-driven marketing –Step Five: Process Is the New Black.

Photo credit: http://www.flickr.com/photos/networkosaka/8512416918

]]>http://www.forbes.com/sites/lisaarthur/2013/10/03/data-driven-marketing-step-four-make-metrics-your-mantra/feed/0Data-Driven Marketing Step Three: Untangle The Data Hairballhttp://www.forbes.com/sites/lisaarthur/2013/09/26/data-driven-marketing-step-three-untangle-the-data-hairball/
http://www.forbes.com/sites/lisaarthur/2013/09/26/data-driven-marketing-step-three-untangle-the-data-hairball/#commentsThu, 26 Sep 2013 12:35:00 +0000http://blogs.forbes.com/lisaarthur/?p=3853Over the past two weeks I’ve discussed how to establish a strategic plan to implement data-driven marketing and how marketers can tear down the silos that impede change. Now it’s time to talk about Step Three in my five-step plan for big data marketing. Let me explain how you can start untangling the data hairball.

What is the data hairball?

As I mentioned earlier, I use “hairball” as a metaphor to describe the complicated jumble of interactions, applications, data and processes that accumulate haphazardly when companies are unprepared to handle information from a wide range of sources. It’s different than the “data deluge” or the “sea of data” we’ve all read about; sticking with that kind of imagery, the data hairball would be the shoreline after a tsunami, but prior to reconstruction.

To me, the data hairball embodies both the promise and the threat behind big data and digital channels. “Promise” because there is infinite value locked-up in all that data and all those channels. “Threat” because I see a snarled data hairball as the biggest obstacle to improving customer engagement.

So, how can you unravel all the complications and start harnessing the power of new data-driven marketing strategies? Once again, it’s critical to take it step-by-step. My upcoming book explains the process in much more detail, but here are the basic eight points I suggest you follow:

1. Define the vision. What customer experience do you want to deliver? Research the customer journey as it is now. Then, paint a picture of the future. You goal is to make that vision a reality.

2. Outline the questions you need to answer. Which business questions do you want the data (and the team) to answer? Too many projects end in disappointment because they fail to keep the outcome in mind. If you aren’t sure what questions to ask, conducting a discovery session with all the key stakeholders can help them bubble up organically.

3. Assign the right team with the right sponsorship. Make sure you bring together people who “get it.” You’ll need senior-executive alignment and support, and you’ll need the team to reach deep into the organization, across multiple departments and geographies. Plus, everyone involved needs to be willing to challenge the status quo as needed.

4. Identify the data requirements. Be certain you understand what types of data you’ll need to drive the desired customer experience. Look at the data you can currently access, and then map your future needs as they relate to your present abilities. You’re bound to find gaps, and that’s okay, because next you’ll need to . . .

5. Find the source of the data you need. As you take inventory of what data exists and where, make sure you look across the entire enterprise. Who knows? Other departments, such as R&D, customer support, inventory management and business operations, may actually be collecting and storing the data you need. Add this information to the map you established in step four, then examine the remaining gaps and determine what additional data you need to collect.

6. Identify and ready the single source of truth. Most organizations typically use a combination of technologies to achieve a single source of verified data—what I like to call the “truth.” These enabling systems usually include a data model or organizational structure, an enterprise data warehouse to provide a single repository for organizational data, a big data analytics discovery platform that collects structured and unstructured data for analysis and insights, and a master data-management solution to build a single source of customer information to be used as the so-called golden record.

7. Consolidate, integrate and iterate your data. Once you have a single source of the truth, you need to populate it by bringing all the data together. Begin by consolidating and integrating the data to inform the strategy, campaigns and initiatives that will elevate the customer experience. Complete the process of unraveling this part of the data hairball by devising new collection processes to use going forward, and add governance policies based on what you learn.

8. Test, expand and evolve. Remember to measure and assess your progress. Start by answering the business questions developed in step two, and verify they are indeed the right questions. Look to deliver a few quick wins and identify landmines that need to be addressed before going any further. Chart out crucial points on your journey where more data will be available to improve a customer interaction or campaign, and then test those, as well. This iterative approach will improve results and build confidence in the data.

And remember: Start small.

Small-scale, pilot projects are valuable because they let you test your data strategy’s feasibility with fewer resources and less risk than larger projects. They’ll also keep you from feeling overwhelmed by the sheer size of your data hairball. As you focus on one strand, you may realize that your pilot project gives you the experience and knowledge to unravel the next strand. Experiment, test and learn. Keep untangling the knots, project by project. It won’t be long before you realize that your data hairball is actually becoming more manageable!

]]>http://www.forbes.com/sites/lisaarthur/2013/09/26/data-driven-marketing-step-three-untangle-the-data-hairball/feed/0Data-Driven Marketing Step Two: Tear Down The Siloshttp://www.forbes.com/sites/lisaarthur/2013/09/19/data-driven-marketing-step-two-tear-down-the-silos/
http://www.forbes.com/sites/lisaarthur/2013/09/19/data-driven-marketing-step-two-tear-down-the-silos/#commentsThu, 19 Sep 2013 12:32:00 +0000http://blogs.forbes.com/lisaarthur/?p=3745A recent study showed that most marketers believe silos –both internal and external to marketing –prevent them from effectively executing campaigns. Meanwhile, Gartner’s prediction that CMOs will soon be spending more on technology than their counterpart CIOs has IT worried that marketing is going to start driving technology initiatives in a vacuum. How can CMOs build the collaborative relationships needed to drive revenue growth in today’s data-driven marketplace? As we continue to explore my five-step plan around big data marketing, let’s discuss Step Two: Tear Down the Silos. Now more than ever, it’s imperative for marketers to improve cooperation and communication throughout the enterprise.

Fair warning: Tearing down silos isn’t easy. First, you’ll need to develop a strategic framework that will drive synergy with other departments and help you align for both short-term and long-term success. To help you begin the process, I’ve identified four ways you can prime both the communication and execution channels:

1. Determine the vision and goal. As I explained last week, CMOs need to think strategically. Develop and communicate a shared understanding of expectations, goals, and anticipated returns. Align on definitions, as well as roles and responsibilities.

2. Make everyone a part of marketing. Empower team members from other organizations to become active participants in setting performance goals and contributing to your go-to-market campaign development process. Create communication channels for rich, two-way exchanges of information and ideas, so every customer-facing function can deliver your message to customers and prospects—and then return data to you for further nurturing.

3. Remain transparent. Be sure the vision permeates the entire marketing effort. Keep other departments up-to-date by making revisions to the marketing calendar, and add those revisions to the seed list for your campaigns. Transparency between sales and marketing is essential! It enables sales to provide you with the feedback you need to fine-tune and optimize marketing initiatives.

4. Share what you did. Communicate results with the entire company to generate a macro-view of accomplishments. Let everyone know where opportunities exist and which improvements have been made. Once you show finance how you can drive improvement in marketing returns or demonstrate to sales how your leads are moving through the pipeline, you can start working together to increase revenue and reduce the overall cost per lead.

Over the next few weeks, I’ll dive deeper into how you can strengthen the relationship between IT and marketing even more. For now, let me leave you with this: The need for change agents who can tear down silos has never been greater. Boards of directors and CEOs crave business leaders who can navigate change, collaborate and demonstrate results. Next week, I’ll explain how you can get one step closer to making big data marketing a reality. I’ll walk you through Step Three: Untangle the Data Hairball.

“How should we get started?” I’m asked that question all the time. It’s clear that by now, most marketers recognize the link between data-driven marketing and business value. But many remain stumped about how to actually begin putting data-driven marketing to work. “What should we do first?” “Is there a right way? A wrong way? A best way?” Over the next few weeks, I’ll walk you through my five-step plan around big data marketing. I’ll break it down and show you how your company can really dig into the issue, confirm decisions and make data-driven marketing a reality. For today, let’s explore Step One: Get Smart, Get Strategic.

Like so many journeys, this one begins with having a clear vision.

Come on, don’t roll your eyes. That’s not a cliché. When companies skip over “the vision thing,” guess what happens? Technology—not strategy—becomes the driver, and as I’ve seen far too often, that’s a recipe for disaster. Technology is never the panacea. It’s the enabler. The system is not the solution, but your ideas are. That’s why aligning behind a shared vision is critical—and not only among the marketing department, but across the entire C-suite, as well.

A shared vision paints the picture that the broader organization needs to support. It helps:

connect the dots between projects

illustrate how these projects drive value

achieve alignment when change sparks turf wars.

Once you have the vision, other pieces will begin to fall into place. Once you have the vision, it’s time to Get Smart and Get Strategic.

Granted, every business is different, and that means the starting points, the visions and the final plans will vary from marketing team to marketing team. However, when you’re ready to get serious about implementing data-driven marketing, you must think strategically –and you have to break down your strategy into its fundamental components. Why? So you can give each one the attention it deserves, while staying true to your core vision.

Let me outline a few of the basics. When I say, “It’s time to get strategic,” I mean you need to develop each one of these five:

1. Customer interaction strategy. Map and understand the buyer journey, from first contact all the way through purchase and aftermarket relationships. Then, identify the changes that need to occur in your company across organizations, systems and data to transform and deliver on your customer engagement plan. Remember: Your goal is to create a consistent, omnichannel customer-centric journey.

2. Analytics strategy. As Tom Davenport explains in my upcoming book, there are three main categories of analytics: business analytics, predictive analytics and prescriptive analytics. Because data and technology will fuel analytics, you need to determine where you are currently and what type of analytics you need to compete and better position your organization in this age of digital disruption.

3. Data strategy. Given the traditional silos of information across the enterprise and the fact that data-driven marketing requires credible data, the development of an enterprise-wide data strategy is absolutely critical. In order for your data strategy to be actionable, it needs to permeate the enterprise, and it needs to be driven as a partnership between IT, marketing and other key business functions. In addition, you’ll need to link the data strategy to overall business objectives, garner senior level sponsorship, stay mindful of data management issues such as data hygiene and compliance considerations and be certain you have the organizational talent to execute. (Don’t worry; I’ll discuss this in more detail over the next few weeks.)

4. Organizational strategy. Since big data transcends departmental walls and challenges conventional approaches, it is disrupting traditional organizational structures and silos. As a result, the C-suite needs to work together to revisit organizational models, evaluate current structures and design new approaches to maximize revenue growth in this new world.

5. Technology strategy. Successful organizations not only nurture strategic partnerships between the CMO and CIO, but also marry business and technology strategy. Then, when debates or roadblocks emerge in these companies, the CIO and CMO can use the broader vision to continue to drive change.

Are you ready to get started with data-driven marketing? Let me be clear: There’s no need for panic over this. But there’s no reason to delay, either. Take the next few days to get working on your vision and strategy. Next week, I’ll explain Step Two: Tear Down the Silos.

]]>http://www.forbes.com/sites/lisaarthur/2013/09/11/data-driven-marketing-step-one-get-smart-get-strategic/feed/0Why You Should Consider Hiring A Chief Digital Officer, And Why Nowhttp://www.forbes.com/sites/lisaarthur/2013/09/03/why-you-should-consider-hiring-a-chief-digital-officer-and-why-now/
http://www.forbes.com/sites/lisaarthur/2013/09/03/why-you-should-consider-hiring-a-chief-digital-officer-and-why-now/#commentsTue, 03 Sep 2013 13:41:00 +0000http://blogs.forbes.com/lisaarthur/?p=3720Faced with the growing importance of the omnichannel customer experience and the expertise required to understand the vision and technology behind data-driven marketing —digital marketing attribution, predictive modeling, dynamic digital profiles, mobile and so on—companies are testing a new position in the C-suite, the chief digital officer (CDO). But, what role does a CDO play, and why is this position (or something like it) so critical for your organization?

CDOs are digital-savvy, business-driven leaders who have what it takes to transform traditional businesses into data-driven companies. They combine marketing and management experience with technical know-how and strategic vision to align and improve business operations across the enterprise. I believe this type of broader, enterprise-wide data management scope has become the “mandate of our era.” And given that big data is here to stay – and getting bigger – your company needs a C-level position that specifically provides:

Technical expertise. As I discussed a few weeks ago, the big data hairball embodies both the promise and the threat behind big data and digital channels. A CDO can accelerate your efforts to unlock the data insights that increase sales and drive revenue growth.

Cross-functional finesse. Despite the CDO’s technical expertise, the primary responsibility of this role is not to make tech decisions. Instead, the CDO is charged with making decisions about how data and customers relate. Remember: Data analytics and the customer experience are not mutually exclusive. However, engraining this fact in your organization will no doubt call for a shift in cultural mindset about data — what it is at your company, what it means to your business, and what you want it to do for you and for your customers’ experience of your brand.

Every department generates data and virtually every customer engagement leaves a digital trail of structured or unstructured information. Creating the systems and processes to capture, organize and leverage the data you’ve already got (and the additional data you know is coming) is the first step to aligning data use with your company’s business strategies. How else can you respond to the changing marketplace?

Silo-busting prowess. The “big data hairball” permeates all departments and transcends individual roles. The CDO must break down barriers to make sure “all hands are on deck” and no one is shying away from rising to the challenge of becoming a data-driven company. One word of caution: I can see how, in a worst-case scenario, a CDO could end up creating a new data silo. Don’t let that happen in your company! Keep the lines of communication and collaboration open and responsive.

Global perspective. The CDO must see how data – from all departments and regions — impacts the entire enterprise and must work to align different departments with a comprehensive data strategy. Another word of caution here: Think carefully about the optimal reporting structure for your firm. In some companies, the CDO reports directly to the CEO to drive enterprise-wide change. In others, the position reports to the CMO, yet carries the broad enterprise mission. In order to be successful, CDO and CMO have to function as collaborative partners.

I’m well aware that a CDO will not be the best fit for every company, and I’ve seen several other successful organizational models begin to emerge. For instance, some companies are unifying the CIO and CMO roles. Others are opting for Chief Marketing Technologist, a Chief Customer Experience Officer, a Chief Customer Officer or perhaps some other designation entirely. When it comes right down to it, it’s not the title that makes the difference; it’s the vision and the responsibility.

No matter what you call it, I urge you to think about it. In today’s world of rapid digital change, your company needs to continually adopt/adjust behaviors so you can use data analytics to gain insights, improve sales and marketing performance and create sustainable competitive advantage. Make sure you put the right person in the right role to help you start driving that kind of big data strategy.

Big data is new and “ginormous” and scary –very, very scary. No, wait. Big data is just another name for the same old data marketers have always used, and it’s not all that big, and it’s something we should be embracing, not fearing. No, hold on. That’s not it, either. What I meant to say is that big data is as powerful as a tsunami, but it’s a deluge that can be controlled . . . in a positive way, to provide business insights and value. Yes, that’s right, isn’t it?

Over the past few years, I have heard big data defined in many, many different ways, and so, I’m not surprised there’s so much confusion surrounding the term. Because of all the misunderstanding and misperceptions, I have to ask:

CMOs, when you talk about “big data” in the C-suite, do you know if everyone’s on the same page? And even closer to home, are you certain there’s consensus within your marketing organization?

You won’t get far untangling your big data hairball if, for example, half of your company is forgetting to include traditional data in the calculus or if some don’t think social network interactions “really” matter. So, please, take a minute to get back to basics and do a simple self-check. Ask yourself, your team, the C-suite:

How do we define big data?

While I fully expect your company to add its own individual tweaks here or there, here’s the one-sentence definition of big data I like to use to get the conversation started:

Big data is a collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis.

Some people like to constrain big data to digital inputs like web behavior and social network interactions; however the CMOs and CIOs I talk with agree that we can’t exclude traditional data derived from product transaction information, financial records and interaction channels, such as the call center and point-of-sale. All of that is big data, too, even though it may be dwarfed by the volume of digital data that’s now growing at an exponential rate.

In defining big data, it’s also important to understand the mix of unstructured and multi-structured data that comprises the volume of information.

Unstructured data comes from information that is not organized or easily interpreted by traditional databases or data models, and typically, it’s text-heavy. Metadata, Twitter tweets, and other social media posts are good examples of unstructured data.

Multi-structured data refers to a variety of data formats and types and can be derived from interactions between people and machines, such as web applications or social networks. A great example is web log data, which includes a combination of text and visual images along with structured data like form or transactional information. As digital disruption transforms communication and interaction channels—and as marketers enhance the customer experience across devices, web properties, face-to-face interactions and social platforms—multi-structured data will continue to evolve.

Industry leaders like the global analyst firm Gartner use phrases like “volume” (the amount of data), “velocity” (the speed of information generated and flowing into the enterprise) and “variety” (the kind of data available) to begin to frame the big data discussion. Others have focused on additional V’s, such as big data’s “veracity” and “value.”

One thing is clear: Every enterprise needs to fully understand big data – what it is to them, what is does for them, what it means to them –and the potential of data-driven marketing, starting today. Don’t wait. Waiting will only delay the inevitable and make it even more difficult to unravel the confusion.

Once you start tackling big data, you’ll learn what you don’t know, and you’ll be inspired to take steps to resolve any problems. Best of all, you can use the insights you gather at each step along the way to start improving your customer engagement strategies; that way, you’ll put big data marketing to work and immediately add more value to both your offline and online interactions.

I know, I know . . . Hairballs are disgusting, and years ago, I never would have dreamed of associating something so repulsive with my chosen profession, marketing. But that was before – before marketers had to manage an ever-expanding array of channels and processes, before we had all kinds of data bombarding us non-stop, before we had to dig through countless treasure troves of information to improve the customer experience. Now all of these things, when left unchecked, contribute to an enormously complex mess I like to call “the data hairball” – and more and more marketers are challenged by it every day.

What exactly IS the data hairball?

Metaphorically speaking I see the data hairball as the biggest obstacle to improving customer engagement. It is the complicated jumble of interactions, applications, data and processes that accumulate haphazardly when companies are unprepared to handle information from a wide range of sources. More than the “data deluge” or the “sea of data” you’ve all read about, extending those notions, the data hairball would be the shoreline after a tsunami, but prior to reconstruction.

To me, the data hairball embodies both the promise and the threat behind big data and digital channels, and whenever I mention it to a roomful of marketers, I sense immediate recognition.

Heads start nodding in agreement. Nervous smiles appear. Some people shuffle their feet as if they could sidestep the very thought of it. Audiences know exactly what I’m talking about when I use the term.

But, that doesn’t surprise me.

After all, marketers are the ones on the front lines, battling with the chaos of traditional and digital information that’s now piling up 24/7. We’re the ones who recognize the colossal complexity of the situation. We’ve all felt the knot of anxiety in our stomachs when we’ve been called into the C-suite to present strategies that often lack the supporting data we know we need to make a compelling case.

While I was working on my book this spring, Jeffrey Hayzlett, the former CMO of Kodak who now serves as an advisor to other CMOs and CEOs, admitted to me that he knew the data hairball all too well and that he had struggled with it at Kodak.

“I was coughing up the data hairball every day,” Hayzlett told me. “At the time, Kodak had unique lines of business focused on their markets, printers, cameras— just to name a couple. Each of those divisions had siloed information they simply weren’t sharing effectively across the enterprise. All I wanted to do was answer the following simple question, ‘What are the names of the 1,500 customers who purchased one of our high-value printers?’”

Then he laughed.

“If someone asked me to produce that list with 24 hour notice or else they’d kill my children, I’d be childless today,” Hayzlett said. “I couldn’t have come up with those names. The systems were broken, even though the data did exist.”

That’s the data hairball.

Over the past few weeks, I’ve discussed why the C-suite is feeling more and more like a goat rodeo and how outdated processes are preventing companies from realizing the true value of data-driven marketing. Now that I’ve defined the data hairball, I’ll explore how you can start unraveling it to leverage the big data insights you need to optimize all aspects of your marketing and customer experience.

The good news? It’s all manageable. But as we all know, no journey can begin without taking those first few strategic steps.

]]>http://www.forbes.com/sites/lisaarthur/2013/08/01/are-you-tangled-in-a-big-data-hairball/feed/2CMOs, You May Have More In Common With Bud Selig Than You Thinkhttp://www.forbes.com/sites/lisaarthur/2013/07/24/cmos-you-may-have-more-in-common-with-bud-selig-than-you-think/
http://www.forbes.com/sites/lisaarthur/2013/07/24/cmos-you-may-have-more-in-common-with-bud-selig-than-you-think/#commentsWed, 24 Jul 2013 15:37:00 +0000http://blogs.forbes.com/lisaarthur/?p=3575

Bud Selig, the commissioner of Major League Baseball, dropped a bombshell last week when he revealed that he doesn’t use email. What’s more, he pledged he “never will.” BusinessWeek followed up with an article about other execs who feel the same way: Janet Napolitano, Sheldon Adelson, etc. Shunning email sounds ridiculous, doesn’t it? But let me ask this: How many of your marketing operations are equally as antiquated?

Before anyone launches into a rant about tech-averse leadership, I suggest taking a good hard look at the way your team works. Do you still rely on the manual manipulation of data and operations? I know many marketers who, even today, begin each project with a hard-copy job starter form. They cram that into a color-coded folder with a stack of other papers, and then walk it all to and fro to track down creative review and approvals.

Likewise, many marketing organizations still use basic spreadsheets to manage their marketing budgets. I have to be honest. That’s always baffled me. Wouldn’t it be absurd for a global corporation to use Excel workbooks to track its overall finances? Why was that method ever considered acceptable for marketing?

The list of dysfunctional marketing operations could go on and on, and the problem is: The old ways of doing business are holding marketers back. If you’re saddled with old-fashioned processes (and mindsets!), you just can’t keep pace.

Sure, years ago, marketers had a small handful of channels to manage, and it was possible to keep track of them on spreadsheets and in email inbox folders. Back then, no one expected real-time decision-making. Heck, not so long ago, annual reports were the norm.

But all that has changed. Nowadays, marketers must adopt data-driven strategies so they can adapt to dramatically different consumer behaviors, ones shaped by the internet, mobile devices, social networks and a global marketplace that is now always on and constantly connected.

The increasing complexity and volume of customer interactions has accelerated the need for marketing organizations to update both internal and external processes. Not only do today’s marketers need to create omni-channel customer experiences; they also must implement tools to integrate data and processes, analyze information for key customer insights and be able to link their efforts directly to revenue growth.

Where should you begin?

That question is generating plenty of conversation in both our industry and in academia. Case in point: The University of Maryland’s Robert H. Smith School of Business’ Center for Complexity in Business (CCB) will be hosting a Roundtable in Washington, D.C. on August 1 to explore this very topic. Experts from both industry and academia will be focusing on the three key aspects you need to consider:

Tracking. Define your customer experience as it is today. What data do you need to improve it? What’s your strategy for collecting and storing that data?

Analysis. Digital marketing analytics will reveal the key customer insights locked in the data you gather. Then, you can use these insights to inform and guide your decisions going forward.

My hope is that, rather than chiding Bud Selig and other execs who don’t use email, marketers will see this news as a wake-up call to step up and start leading the way. What’s holding you back from providing the relevant, personalized messages your customers crave?